Japan futures climb on prospect of fresh China stimulus

• Japanese rubber futures rose on Tuesday, supported by the prospect of further fiscal stimulus from top consumer China, although softer economic data from Beijing and weaker oil prices capped a further upside in prices.

• The March Osaka Exchange (OSE) rubber contract TRB1!, TRB1! was up 5.6 yen, or 1.45%, at 392.0 yen ($2.62) per kg, as of 0155 GMT.

• The January rubber contract on the Shanghai Futures Exchange (SHFE) RSS31!, however, fell 65 yuan, or 1.45%, to 18,225 yuan ($2,568.60) per metric ton.

• China may raise an additional 6 trillion yuan ($850 billion) from special treasury bonds over three years to help bolster a sagging economy through expanded fiscal stimulus, Caixin Global reported late on Monday.

• Beijing had pledged on Saturday to "significantly increase" debt to revive its sputtering economy, but left investors guessing on the size and timing of the stimulus.

• Meanwhile, the country's export growth slowed sharply in September while imports also unexpectedly decelerated, undershooting forecasts by big margins and suggesting manufacturers are slashing prices to move inventory ahead of tariffs from several trade partners.

• The yen USDJPY last fetched 149.55 per dollar, having touched a 2-1/2-month high of 149.98 on Monday. It last hit the 150 level on Aug. 1.

• A stronger currency makes yen-denominated assets less affordable to overseas buyers.

• Oil prices slid $2 in early Asian trade on Tuesday as OPEC lowered its outlook for global oil demand growth in 2024 and 2025 and following a media report that Israel is willing to strike Iranian military and not nuclear or oil targets.

• Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.

• The November front-month rubber contract on Singapore Exchange's SICOM platform TF1! last traded at 198.6 U.S. cents per kg, down 0.1%.

($1 = 149.5100 yen)

($1 = 7.0953 yuan)